HomeBuilder Scheme – Things You Need to Know

by Jun 16, 2020

HomeBuilder is a tax-free grant program initiated by the Federal Government to stimulate the residential construction sector in response to the economic downturn caused by COVID-19. This scheme is designed to boost construction to create jobs & grow our economy. The housing sector is critical to the Australian economy. The Australian Government announced the HomeBuilder scheme, offering $25,000 cash grants for buyers of freshly built homes or those renovating their property!

Why is the Government offering this grant?

In an attempt to boost new projects between now and the end of the year, the Australian
Government’s generous HomeBuilder Grant of $25,000 for eligible homeowners building or renovating is an attractive support package and a catalyst for people to buy their first home or undertake a major rebuild of an existing home. This is a massive relief to the 1000s of home builders around the country. The aim of the stimulus, which was announced last week, is to give the building industry a boost by offering Australians who want to build or renovate their homes a cash incentive to go ahead and get started.

Who is eligible?

You must be a private homeowner and an Australian citizen aged over 18. It’s not available for companies or trusts. The grant is available to individuals with annual income up to $125,000 a year, or couples with a combined income of up to $200,000, based on 2018-19 tax returns. With the ‘HomeBuilder’ scheme, the $25,000 cash grant will be restricted to people on middle incomes and to new homes and major renovations valued between $150,000 and $750,000.

HomeBuilder Exclusions

Owner-builders and people wishing to build a new home or renovate an existing home as investment properties are not eligible for HomeBuilder. In addition to the grant, this proposed stimulus package would also include funding for renovations to make homes more resilient to natural disasters and funding for commercial programs, such as cladding and asbestos rectification. Renovation work will not include structures separate to the main property, like

• Swimming pools
• Tennis courts
• Outdoor spas and saunas
• Sheds or garages that are unconnected to the property

Is there a time limit?

Yes. The scheme lasts from 4 June 2020 until 31 December 2020. The construction must start within three months of the contract signing date. The HomeBuilder scheme has several qualifying criteria, including the type of property, your income and who you use as the builder.

If you meet the eligibility criteria, you can apply for the $25,000 grant between now and December 31, with the work contracted to start within three months of the contract date. More information on HomeBuilder, including eligibility, can be found here
https://treasury.gov.au/coronavirus/homebuilder

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